RVIA Economic Impact Study

The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.

Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .

Adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share are non-GAAP measures. For reconciliations of the adjusted pro forma net income and adjusted pro forma earnings per fully exchanged and diluted share to GAAP net income attributable to Camping World Holdings, Inc. and diluted weighted-average shares of Class A common stock outstanding, see the “Non-GAAP Financial Measures” section later in this press release.

Basic and diluted earnings per Class A common stock is applicable only for periods after the company’s IPO. For a discussion of earnings per share see the “Earnings Per Share” section later in this press release.

Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. For reconciliations of Adjusted EBITDA to GAAP net income and adjusted EBITDA margin to GAAP net income margin, see the “Non-GAAP Financial Measures” section later in this press release.

“Our business in the fourth quarter and fiscal 2016 was very strong and we are pleased with the results," Camping World Chairman and CEO Marcus Lemonis says. "The fourth quarter and full year benefited from strong consumer demand for recreational vehicles and our ability to sell our comprehensive portfolio of products and services across a growing proprietary customer database. In particular, our focus on the towable segment of the RV industry and higher-margin product and service revenue is driving our operating margin growth and flowing through to our bottom line. Being the only provider of a comprehensive portfolio of services, protection plans, products and resources for RV enthusiasts and operating the largest national network of RV-centric retail locations in the United States, we believe we are well positioned to benefit from continued growth in the installed base of RV owners that is being partially driven by higher levels of first-time buyers and new younger consumers, as well as the aging of the baby boomer demographic.”

Presentation

This press release presents historical results, for the periods presented, of Camping World Holdings, Inc. and its subsidiaries that are presented in accordance with accounting principles generally accepted in the United States, unless noted as a non-GAAP financial measure. The company’s initial public offering and related reorganization transactions that occurred on Oct. 6, 2016 resulted in CWH as the sole managing member of CWGS Enterprises, LLC, with sole voting power in and control of the management of CWGS, LLC. Despite its position as sole managing member of CWGS, LLC, CWH has a minority economic interest in CWGS, LLC. As of Dec. 31, 2016, CWH owned 22.6 percent of CWGS, LLC. Accordingly, the company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. As the Reorganization Transactions are considered transactions among entities under common control, the financial statements for the periods prior to the IPO and related Reorganization Transactions have been adjusted to combine the previously separate entities for presentation purposes. Unless otherwise indicated, all financial comparisons in this press release compare the financial results from the 2016 fourth quarter and full year to the company's financial results from the 2015 fourth quarter and full year, respectively.

Fourth Quarter 2016 Results Compared to Fourth Quarter 2015 Results

Units and Average Selling Prices

New vehicle units sold increased 24.5 percent to 7,986 and the average selling price of a new vehicle decreased 8.5 percent to $41,731 in the fourth quarter fiscal 2016. The increase in new vehicle units sold was primarily driven by strong consumer demand for both new and used vehicles and a shortage of supply of used vehicles. The decrease in the average selling price of a new vehicle was driven by a higher mix of lower-priced towable units, which was partially driven by an increase in the number of first-time vehicle buyers.

Used vehicle units sold decreased 19.1 percent to 5,330 and the average selling price of a used vehicle decreased 0.8 percent to $24,189 in the fourth quarter fiscal 2016. The decrease in used vehicle units sold was primarily driven by a shortage of supply of used vehicles, which was partially driven by an increase in the number of first-time vehicle buyers over the past several quarters.

Revenue

Total revenue increased 3.5 percent to $670 million from $647.3 million in the fourth quarter of fiscal 2015.

Consumer Services and Plans revenue increased 4.4 percent to $48.9 million from $46.9 million in the fourth quarter of fiscal 2015. The increase was primarily driven by increases in: club memberships, roadside assistance contracts and vehicle insurance written premiums.

Retail revenue increased 3.4 percent to $621.1 million from $600.5 million in the fourth quarter of fiscal 2015. Within the Retail segment, new vehicle revenue increased 13.8 percent to $333.3 million, used vehicle revenue decreased 19.7 percent to $128.9 million, parts, services and other revenue increased 3.2 percent to $117.7 million and finance and insurance revenue increased 24.9 percent to $41.2 million. Strong consumer demand for recreational vehicles combined with a shortage of supply of used vehicles benefited new vehicle sales and finance and insurance sales and hindered used vehicle sales. Finance and insurance net revenue as a percentage of total new and used vehicle revenue increased to 8.9 percent from 7.3 percent in the fourth quarter of fiscal 2015 and benefited from a sales mix shift toward lower-priced towable units and continued employee training on the sale of finance and insurance related programs.